Taxation Laws Amendment Act (No. 3) 1997 (147 of 1997)

Schedule 14   Gains and losses

Part 2   Income Tax Assessment Act 1936 (capital gains and capital losses)

37   Subsections 160ZP(11) and (12)

Repeal the subsections, substitute:

(11) If the loss company is a shareholder in the gain company and receives any consideration from the gain company for the whole or a part of a net capital loss incurred by the loss company being treated under subsection (7AAA) as a capital loss or a net capital loss incurred by the gain company:

(a) a capital gain does not accrue to the loss company because of the receipt of the consideration; and

(b) the consideration is not taken to be income derived by the loss company.

(12) If the gain company gives any consideration to the loss company for the whole or a part of a net capital loss incurred by the loss company being treated under subsection (7AAA) as a capital loss or a net capital loss incurred by the gain company:

(a) the gain company does not incur a capital loss because of the giving of the consideration; and

(b) the consideration is not an allowable deduction to the gain company.